Cramer on Fed: It's a Start

The Federal Reserve’s emergency 75-basis point cut is a “good start” to help the hemorrhaging financial markets, Cramer said. But if Bernanke initiated this cut three months ago, a global sell-off could have been averted. “What was the point of waiting?” he lamented.

The Mad Money host still lacks confidence in the central bank’s ability to come to the rescue and stop a full-blown recession. He has been calling for a full-point cut as well as a government rescue of the mortgage and bond insurers: AMBAC , MBIA , PMI Group and MGIC .

Fed Fight

The attention remains on the Fed and what it will do next, with Greg Ip, Wall Street Journal, Vince Farrell, Scotsman Capital Management; CNBC's David Faber, Charlie Gasparino, Rick Santelli & Jim Cramer

CNBC’s Rick Santelli took issue with Cramer continuing to fault Bernanke for the credit woes. It’s easy to blame the Fed, he said, but what about the financials? Why not blame the trading desks at Bank of America , Wachovia or Citigroup?

But Cramer has been bearish on the banks since the depths of the credit crisis became apparent late last summer. He also has not been shy in voicing his fear that the U.S. is in a recession and stocks are in a bear market.

“This credit market crap and all these lending standards have been going on for years,” Santelli said, adding that the market is still in a state of de-leveraging. When the smoke clears, he thinks the Fed’s rate cuts should prove to be just what was needed.

“The Fed is going to save the day when the car accident is over,” Santelli said. Not before.